U.S. Individual Income Tax Return

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Page 1 of 15 of 2007 Instructions for Schedules A & B (Form 1040)16:56 - 2-NOV-2007
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Department of the Treasury
Internal Revenue Service

2007 Instructions for Schedules A & B
(Form 1040)
Instructions for
Schedule A,
Itemized
Deductions

Use Schedule A (Form 1040) to figure your itemized deductions. In most cases, your federal
income tax will be less if you take the larger of your itemized deductions or your standard
deduction.
If you itemize, you can deduct a part of your medical and dental expenses and unreimbursed employee business expenses, and amounts you paid for certain taxes, interest,
contributions, and miscellaneous expenses. You can also deduct certain casualty and theft
losses.
If you and your spouse paid expenses jointly and are filing separate returns for 2007, see
Pub. 504 to figure the portion of joint expenses that you can claim as itemized deductions.

Do not include on Schedule A items deducted elsewhere, such as on Form 1040
or Schedule C, C-EZ, E, or F.

Section references are to the Internal
Revenue Code unless otherwise noted.

also explains when you can deduct capital
expenses and special care expenses for disabled persons.

What’s New

If you received a distribution
from a health savings account
or a medical savings account in
2007, see Pub. 969 to figure
your deduction.

Standard mileage rates. The 2007 rate for

use of your vehicle to get medical care is 20
cents a mile. The special rate for charitable
use of your vehicle to provide relief related
to Hurricane Katrina has expired.
State and local general sales taxes. The option to deduct state and local general sales
taxes instead of state and local income
taxes was extended through 2007. See the
instructions for line 5 that begin on page
A-2.
Mortgage insurance premiums. Mortgage
insurance premiums for mortgage insurance contracts issued after December 31,
2006, may be deductible on new line 13.
See the instructions for line 13 on page
A-7.
New recordkeeping requirements for
contributions of money. For charitable

contributions made in cash, regardless of
the amount, you must maintain as a record
of the contribution a bank record (such as a
canceled check) or a written record from
the charity. The written record must include the name of the charity, date, and
amount of the contribution. See Gifts to
Charity that begins on page A-7.

Medical and Dental
Expenses
You can deduct only the part of your medical and dental expenses that exceeds 7.5%
of the amount on Form 1040, line 38.
Pub. 502 discusses the types of expenses that you can and cannot deduct. It

Examples of Medical and
Dental Payments You Can
Deduct
To the extent you were not reimbursed, you
can deduct what you paid for:
• Insurance premiums for medical and
dental care, including premiums for qualified long-term care contracts as defined in
Pub. 502. But see Limit on long-term care
premiums you can deduct on page A-2. Reduce the insurance premiums by any
self-employed health insurance deduction
you claimed on Form 1040, line 29. You
cannot deduct insurance premiums paid
with pretax dollars because the premiums
are not included in box 1 of your Form(s)
W-2. If you are a retired public safety officer, you cannot deduct any premiums you
paid to the extent they were paid for with a
tax-free distribution from your retirement
plan.

If, during 2007, you were an eligible trade adjustment assistance (TAA) recipient,
alternative TAA recipient, or
Pension Benefit Guaranty Corporation pension recipient, you must reduce your insurance premiums by any amounts used to
figure the health coverage tax credit. See
the instructions for line 1 on page A-2

• Prescription medicines or insulin.
• Acupuncturists, chiropractors, den-

tists, eye doctors, medical doctors, occupational therapists, osteopathic doctors,
physical therapists, podiatrists, psychia-

A-1
Cat. No. 24328L

trists, psychoanalysts (medical care only),
and psychologists.
• Medical examinations, X-ray and laboratory services, insulin treatment, and
whirlpool baths your doctor ordered.
• Nursing help (including your share of
the employment taxes paid). If you paid
someone to do both nursing and housework, you can deduct only the cost of the
nursing help.
• Hospital care (including meals and
lodging), clinic costs, and lab fees.
• Qualified long-term care services (see
Pub. 502).
• The supplemental part of Medicare insurance (Medicare B).
• The premiums you pay for Medicare
Part D insurance.
• A program to stop smoking and for
prescription medicines to alleviate nicotine
withdrawal.
• A weight-loss program as treatment
for a specific disease (including obesity)
diagnosed by a doctor.
• Medical treatment at a center for drug
or alcohol addiction.
• Medical aids such as eyeglasses, contact lenses, hearing aids, braces, crutches,
wheelchairs, and guide dogs, including the
cost of maintaining them.
• Surgery to improve defective vision,
such as laser eye surgery or radial keratotomy.
• Lodging expenses (but not meals)
while away from home to receive medical
care in a hospital or a medical care facility
related to a hospital, provided there was no
significant element of personal pleasure,
recreation, or vacation in the travel. Do not
deduct more than $50 a night for each eligible person.
• Ambulance service and other travel
costs to get medical care. If you used your
own car, you can claim what you spent for

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gas and oil to go to and from the place you
received the care; or you can claim 20 cents
a mile. Add parking and tolls to the amount
you claim under either method.
Note. Certain medical expenses paid out of

a deceased taxpayer’s estate can be claimed
on the deceased taxpayer’s final return. See
Pub. 502 for details.
Limit on long-term care premiums you can
deduct. The amount you can deduct for

qualified long-term care contracts (as defined in Pub. 502) depends on the age, at
the end of 2007, of the person for whom the
premiums were paid. See the chart below
for details.
IF the person
was, at the end
of 2007, age . . .

THEN the most
you can deduct
is . . .

40 or under

$ 290

41–50

$ 550

51–60

$ 1,110

61–70

$ 2,950

71 or older

$ 3,680

Examples of Medical and
Dental Payments You
Cannot Deduct
• The cost of diet food.
• Cosmetic surgery unless it was neces-

sary to improve a deformity related to a
congenital abnormality, an injury from an
accident or trauma, or a disfiguring disease.
• Life insurance or income protection
policies.
• The Medicare tax on your wages and
tips or the Medicare tax paid as part of the
self-employment tax or household employment taxes.

If you were age 65 or older but
not entitled to social security
benefits, you can deduct premiums you voluntarily paid for
Medicare A coverage.
• Nursing care for a healthy baby. But
you may be able to take a credit for the
amount you paid. See the instructions for
Form 1040, line 47.
• Illegal operations or drugs.
• Imported drugs not approved by the
U.S. Food and Drug Administration
(FDA). This includes foreign-made versions of U.S.-approved drugs manufactured
without FDA approval.
• Nonprescription medicines (including
nicotine gum and certain nicotine patches).
• Travel your doctor told you to take for
rest or a change.
• Funeral, burial, or cremation costs.

TIP

Line 1
Medical and Dental
Expenses
Enter the total of your medical and dental
expenses (see page A-1), after you reduce
these expenses by any payments received
from insurance or other sources. See Reimbursements below.

Do not forget to include insurance premiums you paid for
TIP
medical and dental care. But if
you claimed the self-employed
health insurance deduction on Form 1040,
line 29, reduce the premiums by the amount
on line 29.
Note. If, during 2007, you were an eligible

trade adjustment assistance (TAA) recipient, alternative TAA recipient, or Pension
Benefit Guaranty Corporation pension recipient, you must complete Form 8885
before completing Schedule A, line 1.
When figuring the amount of insurance
premiums you can deduct on Schedule A,
do not include:
• Any amounts you included on Form
8885, line 4,
• Any qualified health insurance premiums you paid to “U.S. Treasury — HCTC,”
or
• Any health coverage tax credit advance payments shown in box 1 of Form
1099-H.
Whose medical and dental expenses can
you include? You can include medical and

dental bills you paid for:
• Yourself and your spouse.
• All dependents you claim on your return.
• Your child whom you do not claim as
a dependent because of the rules for children of divorced or separated parents.
• Any person you could have claimed as
a dependent on your return except that person received $3,400 or more of gross income or filed a joint return.
• Any person you could have claimed as
a dependent except that you, or your spouse
if filing jointly, can be claimed as a dependent on someone else’s 2007 return.
Example. You provided over half of
your mother’s support but cannot claim her
as a dependent because she received wages
of $3,400 in 2007. You can include on line
1 any medical and dental expenses you paid
in 2007 for your mother.
Reimbursements. If your insurance company paid the provider directly for part of
your expenses, and you paid only the
amount that remained, include on line 1
only the amount you paid. If you received a
reimbursement in 2007 for medical or dental expenses you paid in 2007, reduce your
2007 expenses by this amount. If you received a reimbursement in 2007 for prior
year medical or dental expenses, do not
reduce your 2007 expenses by this amount.

A-2

But if you deducted the expenses in the
earlier year and the deduction reduced your
tax, you must include the reimbursement in
income on Form 1040, line 21. See Pub.
502 for details on how to figure the amount
to include.
Cafeteria plans. Do not include on line 1

insurance premiums paid by an
employer-sponsored health insurance plan
(cafeteria plan) unless the premiums are
included in box 1 of your Form(s) W-2.
Also, do not include any other medical and
dental expenses paid by the plan unless the
amount paid is included in box 1 of your
Form(s) W-2.

Taxes You Paid
Taxes You Cannot Deduct
• Federal income and excise taxes.
• Social security, Medicare, federal un-

employment (FUTA), and railroad retirement (RRTA) taxes.
• Customs duties.
• Federal estate and gift taxes. But see
the instructions for line 28 on page A-10.
• Certain state and local taxes, including: tax on gasoline, car inspection fees,
assessments for sidewalks or other improvements to your property, tax you paid
for someone else, and license fees (marriage, driver’s, dog, etc.).

Line 5
You can elect to deduct state
and local general sales taxes instead of state and local income
taxes. You cannot deduct
both.

State and Local Income
Taxes
If you deduct state and local income taxes,
check box a on line 5. Include on this line
the state and local income taxes listed below.
• State and local income taxes withheld
from your salary during 2007. Your
Form(s) W-2 will show these amounts.
Forms W-2G, 1099-G, 1099-R, and
1099-MISC may also show state and local
income taxes withheld.
• State and local income taxes paid in
2007 for a prior year, such as taxes paid
with your 2006 state or local income tax
return. Do not include penalties or interest.
• State and local estimated tax payments made during 2007, including any
part of a prior year refund that you chose to
have credited to your 2007 state or local
income taxes.
• Mandatory contributions you made to
the California, New Jersey, or New York
Nonoccupational Disability Benefit Fund,
Rhode Island Temporary Disability Benefit
Fund, or Washington State Supplemental
Workmen’s Compensation Fund.

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• Mandatory contributions to the
Alaska, New Jersey, or Pennsylvania state
unemployment fund.
Do not reduce your deduction by any:
• State or local income tax refund or
credit you expect to receive for 2007, or
• Refund of, or credit for, prior year
state and local income taxes you actually
received in 2007. Instead, see the instructions for Form 1040, line 10.

State and Local General
Sales Taxes
If you elect to deduct state and local general
sales taxes, you must check box b on line
5. To figure your deduction, you can use
either your actual expenses or the optional
sales tax tables.

Actual Expenses
Generally, you can deduct the actual state
and local general sales taxes (including
compensating use taxes) you paid in 2007
if the tax rate was the same as the general
sales tax rate. However, sales taxes on
food, clothing, medical supplies, and motor
vehicles are deductible as a general sales
tax even if the tax rate was less than the
general sales tax rate. If you paid sales tax
on a motor vehicle at a rate higher than the
general sales tax rate, you can deduct only
the amount of tax that you would have paid
at the general sales tax rate on that vehicle.
Motor vehicles include cars, motorcycles,
motor homes, recreational vehicles, sport
utility vehicles, trucks, vans, and off-road
vehicles. Also include any state and local
general sales taxes paid for a leased motor
vehicle. Do not include sales taxes paid on
items used in your trade or business.

You must keep your actual receipts showing general sales
taxes paid to use this method.
Refund of general sales taxes. If you received a refund of state or local general
sales taxes in 2007 for amounts paid in
2007, reduce your actual 2007 state and
local general sales taxes by this amount. If
you received a refund of state or local general sales taxes in 2007 for prior year
purchases, do not reduce your 2007 state
and local general sales taxes by this
amount. But if you deducted your actual
state and local general sales taxes in the
earlier year and the deduction reduced your
tax, you may have to include the refund in
income on Form 1040, line 21. See Recoveries in Pub. 525 for details.

Optional Sales Tax Tables
Instead of using your actual expenses, you
can use the tables on pages A-11 through
A-13 to figure your state and local general
sales tax deduction. You may also be able
to add the state and local general sales taxes
paid on certain specified items.
To figure your state and local general
sales tax deduction using the tables, complete the worksheet on page A-4 or use the
2007 Sales Tax Deduction Calculator on
the IRS website. To use the 2007 Sales Tax
Deduction Calculator, go to www.irs.gov

and enter “Sales tax deduction calculator”
in the search box.

If your filing status is married
filing separately, both you and
your spouse elect to deduct
sales taxes, and your spouse
elects to use the optional sales tax tables,
you also must use the tables to figure your
state and local general sales tax deduction.
Instructions for Line 5b
Worksheet
Line 1. If you lived in the same state for all
of 2007, enter the applicable amount, based
on your 2007 income and exemptions, from
the optional state sales tax table for your
state on page A-11 or A-12. Read down the
“At least – But less than” columns for your
state and find the line that includes your
2007 income. If married filing separately,
do not include your spouse’s income. Your
2007 income is the amount shown on your
Form 1040, line 38, plus any nontaxable
items, such as the following.
• Tax-exempt interest.
• Veterans’ benefits.
• Nontaxable combat pay.
• Workers’ compensation.
• Nontaxable part of social security and
railroad retirement benefits.
• Nontaxable part of IRA, pension, or
annuity distributions. Do not include rollovers.
• Public assistance payments.
The exemptions column refers to the number of exemptions claimed on Form 1040,
line 6d.
What if you lived in more than one
state? If you lived in more than one state
during 2007, look up the table amount for
each state using the above rules. If there is
no table for your state, the table amount is
considered to be zero. Multiply the table
amount for each state you lived in by a
fraction. The numerator of the fraction is
the number of days you lived in the state
during 2007 and the denominator is the total number of days in the year (365). Enter
the total of the prorated table amounts for
each state on line 1. However, if you also
lived in a locality during 2007 that imposed
a local general sales tax, do not enter the
total on line 1. Instead, complete a separate
worksheet for each state you lived in and
enter the prorated amount for that state on
line 1.
Example. You lived in State A from
January 1 through August 31, 2007 (243
days), and in State B from September 1
through December 31, 2007 (122 days).
The table amount for State A is $500. The
table amount for State B is $400. You
would figure your state general sales tax as
follows.
State A:
State B:
Total

$500 x 243/365 =
$400 x 122/365 =
=

$333
134
$467

If none of the localities in which you
lived during 2007 imposed a local general
sales tax, enter $467 on line 1 of your
worksheet. Otherwise, complete a separate
worksheet for State A and State B. Enter

A-3

$333 on line 1 of the State A worksheet and
$134 on line 1 of the State B worksheet.
Line 2. If you checked the “No” box, enter
-0- on line 2, and go to line 3. If you
checked the “Yes” box and lived in the
same locality for all of 2007, enter the applicable amount, based on your 2007 income and exemptions, from the optional
local sales tax table for your locality on
page A-13. Read down the “At least – But
less than” columns for your locality and
find the line that includes your 2007 income. See the line 1 instructions on this
page to figure your 2007 income. The exemptions column refers to the number of
exemptions claimed on Form 1040, line 6d.
What if you lived in more than one locality? If you lived in more than one locality during 2007, look up the table amount
for each locality using the above rules. If
there is no table for your locality, the table
amount is considered to be zero. Multiply
the table amount for each locality you lived
in by a fraction. The numerator of the fraction is the number of days you lived in the
locality during 2007 and the denominator is
the total number of days in the year (365).
If you lived in more than one locality in the
same state and the local general sales tax
rate was the same for each locality, enter
the total of the prorated table amounts for
each locality in that state on line 2. Otherwise, complete a separate worksheet for
lines 2 through 6 for each locality and enter
each prorated table amount on line 2 of the
applicable worksheet.
Example. You lived in Locality 1 from
January 1 through August 31, 2007 (243
days), and in Locality 2 from September 1
through December 31, 2007 (122 days).
The table amount for Locality 1 is $100.
The table amount for Locality 2 is $150.
You would figure the amount to enter on
line 2 as follows. Note that this amount
may not equal your local sales tax deduction, which is figured on line 6 of the worksheet.
Locality 1:
Locality 2:
Total

$100 x 243/365 =
$150 x 122/365 =
=

$ 67
50
$117

Line 3. If you lived in California, check the
“No” box if your combined state and local
general sales tax rate is 7.25%. Otherwise,
check the “Yes” box and include on line 3
only the part of the combined rate that is
more than 7.25%.
If you lived in Nevada, check the “No”
box if your combined state and local general sales tax rate is 6.5%. Otherwise, check
the “Yes” box and include on line 3 only
the part of the combined rate that is more
than 6.5%.
If you lived in Texarkana, Arkansas,
check the “Yes” box and enter “4.0” on line
3. Your local general sales tax rate of 4.0%
includes the additional 2.5% sales tax rate
for Texarkana and the 1.5% sales tax rate
for Miller County.
What if your local general sales tax rate
changed during 2007? If you checked the
“Yes” box and your local general sales tax
rate changed during 2007, figure the rate to
enter on line 3 as follows. Multiply each tax

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rate for the period it was in effect by a
fraction. The numerator of the fraction is
the number of days the rate was in effect
during 2007 and the denominator is the total number of days in the year (365). Enter
the total of the prorated tax rates on line 3.
Example. Locality 1 imposed a 1% local general sales tax from January 1
through September 30, 2007 (273 days).
The rate increased to 1.75% for the period

from October 1 through December 31,
2007 (92 days). You would enter “1.189”
on line 3, figured as follows.
January 1 –
September 30:
October 1 –
December 31:
Total

1.00 x 273/365 =

0.748

1.75 x 92/365 =
=

0.441
1.189

What if you lived in more than one
locality in the same state during 2007?
Complete a separate worksheet for lines 2
through 6 for each locality in your state if
you lived in more than one locality in the
same state during 2007 and either of the
following applies.
• Each locality did not have the same
local general sales tax rate.

State and Local General Sales Tax Deduction Worksheet—Line 5b
(See the Instructions for Line 5b Worksheet that begin on page A-3.)

Keep for Your Records

Before you begin: See the instructions for line 1 on page A-3 if:
⻫
⻫

You lived in more than one state during 2007, or
You had any nontaxable income in 2007.

1. Enter your state general sales taxes from the applicable table on page A-11 or A-12 (see page A-3 of
the instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. $
Next. If, for all of 2007, you lived only in Connecticut, the District of Columbia, Hawaii, Indiana,
Kentucky, Maine, Maryland, Massachusetts, Michigan, Mississippi, New Jersey, Rhode Island,
Virginia, or West Virginia, skip lines 2 through 5, enter -0- on line 6, and go to line 7. Otherwise, go
to line 2.
2. Did you live in Alaska, Arizona, Arkansas (Texarkana only), California (Los Angeles County only),
Colorado, Georgia, Illinois, Louisiana, New York State, or North Carolina in 2007?
No. Enter -0Yes. Enter your local general sales taxes from the applicable
table on page A-13 (see page A-3 of the instructions)

}

.........

2.

$

3. Did your locality impose a local general sales tax in 2007? Residents of California,
Nevada, and Texarkana, Arkansas, see page A-3 of the instructions.
No. Skip lines 3 through 5, enter -0- on line 6, and go to line 7.
Yes. Enter your local general sales tax rate, but omit the percentage sign. For
example, if your local general sales tax rate was 2.5%, enter 2.5. If your local
general sales tax rate changed or you lived in more than one locality in the same
state during 2007, see page A-3 of the instructions. (If you do not know your local
general sales tax rate, contact your local government.) . . . . . . . . . . . . . . . . . . . . . 3.

.

4. Did you enter -0- on line 2 above?
No. Skip lines 4 and 5 and go to line 6.
Yes. Enter your state general sales tax rate (shown in the table heading for your
state), but omit the percentage sign. For example, if your state general sales tax
rate is 6%, enter 6.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

.

5. Divide line 3 by line 4. Enter the result as a decimal (rounded to at least three places) 5.

.

6. Did you enter -0- on line 2 above?
No. Multiply line 2 by line 3

}

. . . . . . . . . . . . . . . . . . . 6. $

Yes. Multiply line 1 by line 5. If you lived in more than one locality in
the same state during 2007, see the instructions above

7. Enter your state and local general sales taxes paid on specified items, if any (see page A-5 of the
instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. $
8. Deduction for general sales taxes. Add lines 1, 6, and 7. Enter the result here and the total from all
your state and local general sales tax deduction worksheets, if you completed more than one, on
Schedule A, line 5. Be sure to check box b on that line . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. $

A-4

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• You lived in Texarkana, AR, or Los
Angeles County, CA.
To figure the amount to enter on line 3
of the worksheet for each locality in which
you lived (except a locality for which you
used the table on page A-13 to figure your
local general sales tax deduction), multiply
the local general sales tax rate by a fraction.
The numerator of the fraction is the number
of days you lived in the locality during
2007 and the denominator is the total number of days in the year (365).
Example. You lived in Locality 1 from
January 1 through August 31, 2007 (243
days), and in Locality 2 from September 1
through December 31, 2007 (122 days).
The local general sales tax rate for Locality
1 is 1%. The rate for Locality 2 is 1.75%.
You would enter “0.666” on line 3 for the
Locality 1 worksheet and “0.585” for the
Locality 2 worksheet, figured as follows.
Locality 1:
Locality 2:

1.00 x 243/365 =
1.75 x 122/365 =

0.666
0.585

Line 6. If you lived in more than one local-

ity in the same state during 2007, you
should have completed line 1 only on the
first worksheet for that state and separate
worksheets for lines 2 through 6 for any
other locality within that state in which you
lived during 2007. If you checked the
“Yes” box on line 6 of any of those worksheets, multiply line 5 of that worksheet by
the amount that you entered on line 1 for
that state on the first worksheet.
Line 7. Enter on line 7 any state and local

general sales taxes paid on the following
specified items. If you are completing more
than one worksheet, include the total for
line 7 on only one of the worksheets.
1. A motor vehicle (including a car, motorcycle, motor home, recreational vehicle,
sport utility vehicle, truck, van, and
off-road vehicle). Also include any state
and local general sales taxes paid for a
leased motor vehicle. If the state sales tax
rate on these items is higher than the general sales tax rate, only include the amount
of tax you would have paid at the general
sales tax rate.
2. An aircraft or boat, if the tax rate was
the same as the general sales tax rate.
3. A home (including a mobile home or
prefabricated home) or substantial addition
to or major renovation of a home, but only
if the tax rate was the same as the general
sales tax rate and any of the following applies.
a. Your state or locality imposes a general sales tax directly on the sale of a home
or on the cost of a substantial addition or
major renovation.
b. You purchased the materials to build
a home or substantial addition or to perform a major renovation and paid the sales
tax directly.
c. Under your state law, your contractor
is considered your agent in the construction
of the home or substantial addition or the
performance of a major renovation. The
contract must state that the contractor is
authorized to act in your name and must

follow your directions on construction decisions. In this case, you will be considered
to have purchased any items subject to a
sales tax and to have paid the sales tax
directly.
Do not include sales taxes paid on items
used in your trade or business. If you received a refund of state or local general
sales taxes in 2007, see Refund of general
sales taxes on page A-3.

Line 7
Personal Property Taxes
Enter the state and local personal property
taxes you paid, but only if the taxes were
based on value alone and were imposed on
a yearly basis.
Example. You paid a yearly fee for the
registration of your car. Part of the fee was
based on the car’s value and part was based
on its weight. You can deduct only the part
of the fee that was based on the car’s value.

Line 6
Real Estate Taxes

Line 8

Include taxes (state, local, or foreign) you
paid on real estate you own that was not
used for business, but only if the taxes are
based on the assessed value of the property.
Also, the assessment must be made uniformly on property throughout the community, and the proceeds must be used for
general community or governmental purposes. Pub. 530 explains the deductions
homeowners can take.

Other Taxes

Do not include the following amounts
on line 6.
• Itemized charges for services to specific property or persons (for example, a
$20 monthly charge per house for trash collection, a $5 charge for every 1,000 gallons
of water consumed, or a flat charge for
mowing a lawn that had grown higher than
permitted under a local ordinance).
• Charges for improvements that tend to
increase the value of your property (for example, an assessment to build a new sidewalk). The cost of a property improvement
is added to the basis of the property. However, a charge is deductible if it is used only
to maintain an existing public facility in
service (for example, a charge to repair an
existing sidewalk, and any interest included
in that charge).
If your mortgage payments include your
real estate taxes, you can deduct only the
amount the mortgage company actually
paid to the taxing authority in 2007.
If you sold your home in 2007, any real
estate tax charged to the buyer should be
shown on your settlement statement and in
box 5 of any Form 1099-S you received.
This amount is considered a refund of real
estate taxes. See Refunds and rebates below. Any real estate taxes you paid at closing should be shown on your settlement
statement.
Refunds and rebates. If you received a re-

fund or rebate in 2007 of real estate taxes
you paid in 2007, reduce your deduction by
the amount of the refund or rebate. If you
received a refund or rebate in 2007 of real
estate taxes you paid in an earlier year, do
not reduce your deduction by this amount.
Instead, you must include the refund or rebate in income on Form 1040, line 21, if
you deducted the real estate taxes in the
earlier year and the deduction reduced your
tax. See Recoveries in Pub. 525 for details
on how to figure the amount to include in
income.

A-5

If you had any deductible tax not listed on
line 5, 6, or 7, list the type and amount of
tax. Enter only one total on line 8. Include
on this line income tax you paid to a foreign
country or U.S. possession.

TIP

You may want to take a credit
for the foreign tax instead of a
deduction. See the instructions
for Form 1040, line 51, for

details.

Interest You Paid
Whether your interest expense is treated as
investment interest, personal interest, or
business interest depends on how and when
you used the loan proceeds. See Pub. 535
for details.
In general, if you paid interest in 2007
that applies to any period after 2007, you
can deduct only amounts that apply for
2007.

Lines 10 and 11
Home Mortgage Interest
A home mortgage is any loan that is secured by your main home or second home.
It includes first and second mortgages,
home equity loans, and refinanced mortgages.
A home can be a house, condominium,
cooperative, mobile home, boat, or similar
property. It must provide basic living accommodations including sleeping space,
toilet, and cooking facilities.
Limit on home mortgage interest. If you

took out any mortgages after October 13,
1987, your deduction may be limited. Any
additional amounts borrowed after October
13, 1987, on a line-of-credit mortgage you
had on that date are treated as a mortgage
taken out after October 13, 1987. If you
refinanced a mortgage you had on October
13, 1987, treat the new mortgage as taken
out on or before October 13, 1987. But if
you refinanced for more than the balance of
the old mortgage, treat the excess as a mortgage taken out after October 13, 1987.
See Pub. 936 to figure your deduction if
either (1) or (2) below applies. If you had
more than one home at the same time, the

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dollar amounts in (1) and (2) apply to the
total mortgages on both homes.
1. You took out any mortgages after October 13, 1987, and used the proceeds for
purposes other than to buy, build, or improve your home, and all of these mortgages totaled over $100,000 at any time
during 2007. The limit is $50,000 if married filing separately. An example of this
type of mortgage is a home equity loan
used to pay off credit card bills, buy a car,
or pay tuition.
2. You took out any mortgages after October 13, 1987, and used the proceeds to
buy, build, or improve your home, and
these mortgages plus any mortgages you
took out on or before October 13, 1987,
totaled over $1 million at any time during
2007. The limit is $500,000 if married filing separately.

If the total amount of all mortgages is more than the fair market value of the home,
additional limits apply. See
Pub. 936.

Line 10
Enter on line 10 mortgage interest and
points reported to you on Form 1098 under
your social security number (SSN). If this
form shows any refund of overpaid interest,
do not reduce your deduction by the refund.
Instead, see the instructions for Form 1040,
line 21. If you and at least one other person
(other than your spouse if filing jointly)
were liable for and paid interest on the
mortgage, and the interest was reported on
Form 1098 under the other person’s SSN,

report your share of the interest on line 11
(as explained in the line 11 instructions below).
If you paid more interest to the recipient
than is shown on Form 1098, see Pub. 936
to find out if you can deduct the additional
interest. If you can, attach a statement explaining the difference and enter “See attached” to the right of line 10.

If you are claiming the mortgage interest credit (for holders
of qualified mortgage credit
certificates issued by state or local governmental units or agencies), subtract the amount shown on Form 8396, line
3, from the total deductible interest you
paid on your home mortgage. Enter the result on line 10.

Line 11
If you did not receive a Form 1098 from the
recipient, report your deductible mortgage
interest on line 11.
If you bought your home from the recipient, be sure to show that recipient’s name,
identifying number, and address on the
dotted lines next to line 11. If the recipient
is an individual, the identifying number is
his or her social security number (SSN).
Otherwise, it is the employer identification
number. You must also let the recipient
know your SSN. If you do not show the
required information about the recipient or
let the recipient know your SSN, you may
have to pay a $50 penalty.
If you and at least one other person
(other than your spouse if filing jointly)

A-6

were liable for and paid interest on the
mortgage, and the other person received the
Form 1098, attach a statement to your return showing the name and address of that
person. To the right of line 11, enter “See
attached.”

Line 12
Points Not Reported on
Form 1098
Points are shown on your settlement statement. Points you paid only to borrow
money are generally deductible over the
life of the loan. See Pub. 936 to figure the
amount you can deduct. Points paid for
other purposes, such as for a lender’s services, are not deductible.
Refinancing. Generally, you must deduct

points you paid to refinance a mortgage
over the life of the loan. This is true even if
the new mortgage is secured by your main
home.
If you used part of the proceeds to improve your main home, you may be able to
deduct the part of the points related to the
improvement in the year paid. See Pub. 936
for details.

TIP

If you paid off a mortgage
early, deduct any remaining
points in the year you paid off
the mortgage.

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Line 13
Qualified Mortgage
Insurance Premiums
Enter the qualified mortgage insurance premiums you paid under a mortgage insurance contract issued during 2007 in
connection with home acquisition debt that
was secured by your first or second home.
See Prepaid mortgage insurance below if
you paid any premiums allocable to any
period after 2007. Box 4 of Form 1098 may
show the amount of premiums you paid in
2007. If you and at least one other person
(other than your spouse if filing jointly)
were liable for and paid the premiums in
connection with the loan, and the premiums
were reported on Form 1098 under the
other person’s SSN, report your share of
the premiums on line 13.
Qualified mortgage insurance is mortgage insurance provided by the Department
of Veterans Affairs, the Federal Housing
Administration, or the Rural Housing Service, and private mortgage insurance (as defined in section 2 of the Homeowners
Protection Act of 1998 as in effect on December 20, 2006).
Mortgage insurance provided by the Department of Veterans Affairs and the Rural
Housing Service is commonly known as a
funding fee and guarantee fee respectively.
These fees can be deducted fully in 2007 if
the mortgage insurance contract was issued
in 2007. Contact the mortgage insurance
issuer to determine the deductible amount
if it is not included in box 4 of Form 1098.
Prepaid mortgage insurance. If you paid

premiums for qualified mortgage insurance

that are allocable to periods after 2007,
such premiums are treated as paid in the
year to which they are allocated. No deduction is allowed for the unamortized balance
if the mortgage is satisfied before its term.
The two preceding sentences do not apply
to qualified mortgage insurance provided
by the Department of Veterans Affairs or
the Rural Housing Service.
Limit on amount you can deduct. You
cannot deduct your mortgage insurance
premiums if the amount on Form 1040, line
38, is more than $109,000 ($54,500 if married filing separately). If the amount on
Form 1040, line 38, is more than $100,000
($50,000 if married filing separately), your
deduction is limited and you must use the
worksheet below to figure your deduction.

Line 14
Investment Interest
Investment interest is interest paid on
money you borrowed that is allocable to
property held for investment. It does not
include any interest allocable to passive activities or to securities that generate tax-exempt income.
Complete and attach Form 4952 to figure your deduction.
Exception. You do not have to file Form
4952 if all three of the following apply.
1. Your investment interest expense is
not more than your investment income
from interest and ordinary dividends minus
any qualified dividends.
2. You have no other deductible investment expenses.

3. You have no disallowed investment
interest expense from 2006.

Alaska Permanent Fund dividends, including those reported
on Form 8814, are not investment income.
For more details, see Pub. 550.

Gifts to Charity
You can deduct contributions or gifts you
gave to organizations that are religious,
charitable, educational, scientific, or literary in purpose. You can also deduct what
you gave to organizations that work to prevent cruelty to children or animals. Certain
whaling captains may be able to deduct
expenses paid in 2007 for Native Alaskan
subsistence bowhead whale hunting activities. See Pub. 526 for details.
To verify an organization’s charitable
status, you can:

• Check with the organization to which
you made the donation. The organization
should be able to provide you with verification of its charitable status.
• See Pub. 78 for a list of most qualified
organizations. You can access Pub. 78 on
the IRS website at www.irs.gov under
Charities and Non-Profits.
• Call our Tax Exempt/Government Entities Customer Account Services at
1-877-829-5500. Assistance is available
Monday through Friday from 8:30 a.m. to

Qualified Mortgage Insurance Premiums Deduction Worksheet—
Line 13
Before you begin:

⻫

Keep for Your Records

See the instructions for line 13 above to see if you must use this worksheet to figure your
deduction.

1. Enter the total premiums you paid in 2007 for qualified mortgage insurance for a contract issued in
2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. Enter the amount from Form 1040, line 38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.
3. Enter $100,000 ($50,000 if married filing separately) . . . . . . . . . . . . . . . . . . . . . . 3.
4. Is the amount on line 2 more than the amount on line 3?
No. Your deduction is not limited. Enter the amount from line 1 above on
Schedule A, line 13. Do not complete the rest of this worksheet.
Yes. Subtract line 3 from line 2. If the result is not a multiple of $1,000 ($500
if married filing separately), increase it to the next multiple of $1,000
($500 if married filing separately). For example, increase $425 to $1,000,
increase $2,025 to $3,000; or if married filing separately, increase $425
to $500, increase $2,025 to $2,500, etc. . . . . . . . . . . . . . . . . . . . . . . . . . 4.
5. Divide line 4 by $10,000 ($5,000 if married filing separately). Enter the result as a decimal. If the
result is 1.0 or more, enter 1.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6. Multiply line 1 by line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7. Qualified mortgage insurance premiums deduction. Subtract line 6 from line 1. Enter the result
here and on Schedule A, line 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

A-7

1.

5.
6.
7.

.

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6:30 p.m. Eastern time. These hours are
subject to change.

Examples of Qualified Charitable
Organizations

• Churches, mosques, synagogues, temples, etc.
• Boy Scouts, Boys and Girls Clubs of
America, CARE, Girl Scouts, Goodwill Industries, Red Cross, Salvation Army,
United Way, etc.
• Fraternal orders, if the gifts will be
used for the purposes listed on page A-7.
• Veterans’ and certain cultural groups.
• Nonprofit schools, hospitals, and organizations whose purpose is to find a cure
for, or help people who have, arthritis,
asthma, birth defects, cancer, cerebral
palsy, cystic fibrosis, diabetes, heart disease, hemophilia, mental illness or retardation, multiple sclerosis, muscular
dystrophy, tuberculosis, etc.
• Federal, state, and local governments
if the gifts are solely for public purposes.

Contributions You Can
Deduct
Contributions can be in cash, property, or
out-of-pocket expenses you paid to do volunteer work for the kinds of organizations
described earlier. If you drove to and from
the volunteer work, you can take the actual
cost of gas and oil or 14 cents a mile. Add
parking and tolls to the amount you claim
under either method. But do not deduct any
amounts that were repaid to you.
Gifts from which you benefit. If you made

a gift and received a benefit in return, such
as food, entertainment, or merchandise,
you can generally only deduct the amount
that is more than the value of the benefit.
But this rule does not apply to certain membership benefits provided in return for an
annual payment of $75 or less. For details,
see Pub. 526.
Example. You paid $70 to a charitable
organization to attend a fund-raising dinner
and the value of the dinner was $40. You
can deduct only $30.
Gifts of $250 or more. You can deduct a

gift of $250 or more only if you have a
statement from the charitable organization
showing the information in (1) and (2) below.
1. The amount of any money contributed and a description (but not value) of
any property donated.
2. Whether the organization did or did
not give you any goods or services in return
for your contribution. If you did receive
any goods or services, a description and
estimate of the value must be included. If
you received only intangible religious benefits (such as admission to a religious ceremony), the organization must state this, but
it does not have to describe or value the
benefit.

In figuring whether a gift is $250 or
more, do not combine separate donations.
For example, if you gave your church $25
each week for a total of $1,300, treat each
$25 payment as a separate gift. If you made
donations through payroll deductions, treat
each deduction from each paycheck as a
separate gift. See Pub. 526 if you made a
separate gift of $250 or more through payroll deduction.

You must get the statement by
the date you file your return or
the due date (including extensions) for filing your return,
whichever is earlier. Do not attach the
statement to your return. Instead, keep it for
your records.

TIP

nancial interest to your trade or business.
See section 170(f)(9).
• Gifts to groups whose purpose is to
lobby for changes in the laws.
• Gifts to civic leagues, social and
sports clubs, labor unions, and chambers of
commerce.
• Value of benefits received in connection with a contribution to a charitable organization. See Pub. 526 for exceptions.

Line 16
Gifts by Cash or Check
Enter on line 16 the total gifts you made in
cash or by check (including out-of-pocket
expenses).

Limit on the amount you can deduct. See

Pub. 526 to figure the amount of your deduction if any of the following applies.
1. Your cash contributions or contributions of ordinary income property are more
than 30% of the amount on Form 1040, line
38.
2. Your gifts of capital gain property are
more than 20% of the amount on Form
1040, line 38.
3. You gave gifts of property that increased in value or gave gifts of the use of
property.

Contributions You Cannot
Deduct
• Travel expenses (including meals and

lodging) while away from home, unless
there was no significant element of personal pleasure, recreation, or vacation in
the travel.
• Political contributions.
• Dues, fees, or bills paid to country
clubs, lodges, fraternal orders, or similar
groups.
• Cost of raffle, bingo, or lottery tickets.
But you may be able to deduct these expenses on line 28. See page A-10 for details.
• Cost of tuition. But you may be able to
deduct this expense on line 21 (see page
A-9), or Form 1040, line 34, or take a credit
for this expense (see Form 8863).
• Value of your time or services.
• Value of blood given to a blood bank.
• The transfer of a future interest in tangible personal property (generally, until the
entire interest has been transferred).
• Gifts to individuals and groups that
are run for personal profit.
• Gifts to foreign organizations. But
you may be able to deduct gifts to certain
U.S. organizations that transfer funds to
foreign charities and certain Canadian, Israeli, and Mexican charities. See Pub. 526
for details.
• Gifts to organizations engaged in certain political activities that are of direct fi-

A-8

Recordkeeping. For any contribution

made in cash, regardless of the amount, you
must maintain as a record of the contribution a bank record (such as a canceled
check) or a written record from the charity.
The written record must include the name
of the charity, date, and amount of the contribution. Do not attach the record to your
tax return. Instead, keep it with your other
tax records.

Line 17
Other Than by Cash or
Check
Enter your contributions of property. If you
gave used items, such as clothing or furniture, deduct their fair market value at the
time you gave them. Fair market value is
what a willing buyer would pay a willing
seller when neither has to buy or sell and
both are aware of the conditions of the sale.
For more details on determining the value
of donated property, see Pub. 561.
If the amount of your deduction is more
than $500, you must complete and attach
Form 8283. For this purpose, the “amount
of your deduction” means your deduction
before applying any income limits that
could result in a carryover of contributions.
If you deduct more than $500 for a contribution of a motor vehicle, boat, or airplane,
you must also attach a statement from the
charitable organization to your return. The
organization may use Form 1098-C to provide the required information. If your total
deduction is over $5,000, you may also
have to get appraisals of the values of the
donated property. This amount is $500 for
certain contributions of clothing and household items (see below). See Form 8283 and
its instructions for details.
Contributions of clothing and household
items. A deduction for these contributions

will be allowed only if the items are in good
used condition or better. However, this rule
does not apply to a contribution of any single item for which a deduction of more than
$500 is claimed and for which you include
a qualified appraisal and Form 8283 with
your tax return.

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Recordkeeping. If you gave property, you

should keep a receipt or written statement
from the organization you gave the property to, or a reliable written record, that
shows the organization’s name and address, the date and location of the gift, and a
description of the property. For each gift of
property, you should also keep reliable
written records that include:
• How you figured the property’s value
at the time you gave it. If the value was
determined by an appraisal, keep a signed
copy of the appraisal.
• The cost or other basis of the property
if you must reduce it by any ordinary income or capital gain that would have resulted if the property had been sold at its
fair market value.
• How you figured your deduction if
you chose to reduce your deduction for
gifts of capital gain property.
• Any conditions attached to the gift.

If your total deduction for gifts
of property is over $500, you
gave less than your entire interest in the property, or you made
a “qualified conservation contribution,”
your records should contain additional information. See Pub. 526 for details.

Line 18
Carryover From Prior Year
Enter any carryover of contributions that
you could not deduct in an earlier year because they exceeded your adjusted gross
income limit. See Pub. 526 for details.

Casualty and Theft
Losses
Line 20
Complete and attach Form 4684 to figure
the amount of your loss to enter on line 20.
You may be able to deduct part or all of
each loss caused by theft, vandalism, fire,
storm, or similar causes, and car, boat, and
other accidents. You may also be able to
deduct money you had in a financial institution but lost because of the insolvency or
bankruptcy of the institution.
You can deduct nonbusiness casualty or
theft losses only to the extent that:
1. The amount of each separate casualty
or theft loss is more than $100, and
2. The total amount of all losses during
the year (reduced by the $100 limit discussed in (1) above) is more than 10% of
the amount on Form 1040, line 38.
Special rules apply if you had both gains
and losses from nonbusiness casualties or
thefts. See Form 4684 and its instructions
for details.
Use Schedule A, line 23, to deduct the
costs of proving that you had a property

loss. Examples of these costs are appraisal
fees and photographs used to establish the
amount of your loss.
For information on federal disaster area
losses, see Pub. 547.

Job Expenses and
Certain Miscellaneous
Deductions
You can deduct only the part of these expenses that exceeds 2% of the amount on
Form 1040, line 38.
Pub. 529 discusses the types of expenses that can and cannot be deducted.

1. You claim any travel, transportation,
meal, or entertainment expenses for your
job.
2. Your employer paid you for any of
your job expenses that you would otherwise report on line 21.

TIP

If you do not have to file Form 2106 or
2106-EZ, list the type and amount of each
expense on the dotted line next to line 21. If
you need more space, attach a statement
showing the type and amount of each expense. Enter the total of all these expenses
on line 21.

Examples of Expenses You
Cannot Deduct
• Political contributions.
• Legal expenses for personal matters

that do not produce taxable income.
• Lost or misplaced cash or property.
• Expenses for meals during regular or
extra work hours.
• The cost of entertaining friends.
• Commuting expenses. See Pub. 529
for the definition of commuting.
• Travel expenses for employment
away from home if that period of employment exceeds 1 year. See Pub. 529 for an
exception for certain federal employees.
• Travel as a form of education.
• Expenses of attending a seminar, convention, or similar meeting unless it is related to your employment.
• Club dues. See Pub. 529 for exceptions.
• Expenses of adopting a child. But you
may be able to take a credit for adoption
expenses. See Form 8839 for details.
• Fines and penalties.
• Expenses of producing tax-exempt income.

Line 21
Unreimbursed Employee
Expenses
Enter the total ordinary and necessary job
expenses you paid for which you were not
reimbursed. (Amounts your employer included in box 1 of your Form W-2 are not
considered reimbursements.)
An ordinary expense is one that is common and accepted in your field of trade,
business, or profession. A necessary expense is one that is helpful and appropriate
for your business. An expense does not
have to be required to be considered necessary.
But you must fill in and attach Form
2106 if either (1) or (2) below applies.

A-9

If you used your own vehicle
and (2) above does not apply,
you may be able to file Form
2106-EZ instead.

Do not include on line 21 any
educator expenses you deducted on Form 1040, line 23.
Examples of other expenses to include
on line 21 are:
• Safety equipment, small tools, and
supplies needed for your job.
• Uniforms required by your employer
that are not suitable for ordinary wear.
• Protective clothing required in your
work, such as hard hats, safety shoes, and
glasses.
• Physical examinations required by
your employer.
• Dues to professional organizations
and chambers of commerce.
• Subscriptions to professional journals.
• Fees to employment agencies and
other costs to look for a new job in your
present occupation, even if you do not get a
new job.
• Certain business use of part of your
home. For details, including limits that apply, use TeleTax topic 509 (see page 79 of
the Form 1040 instructions) or see Pub.
587.
• Certain educational expenses. For details, use TeleTax topic 513 (see page 79 of
the Form 1040 instructions) or see Pub.
970. Reduce your educational expenses by
any tuition and fees deduction you claimed
on Form 1040, line 34.

TIP

You may be able to take a credit
for your educational expenses
instead of a deduction. See
Form 8863 for details.

Line 22
Tax Preparation Fees
Enter the fees you paid for preparation of
your tax return, including fees paid for filing your return electronically. If you paid
your tax by credit card, do not include the
convenience fee you were charged.

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Line 23
Other Expenses
Enter the total amount you paid to produce
or collect taxable income and manage or
protect property held for earning income.
But do not include any personal expenses.
List the type and amount of each expense
on the dotted lines next to line 23. If you
need more space, attach a statement showing the type and amount of each expense.
Enter one total on line 23.
Examples of expenses to include on line
23 are:
• Certain legal and accounting fees.
• Clerical help and office rent.
• Custodial (for example, trust account)
fees.
• Your share of the investment expenses of a regulated investment company.
• Certain losses on nonfederally insured
deposits in an insolvent or bankrupt financial institution. For details, including limits
that apply, see Pub. 529.
• Casualty and theft losses of property
used in performing services as an employee
from Form 4684, lines 32 and 38b, or Form
4797, line 18a.
• Deduction for repayment of amounts
under a claim of right if $3,000 or less.

Other Miscellaneous
Deductions

• Certain unrecovered investment in a
pension.
• Impairment-related work expenses of
a disabled person.
For more details, see Pub. 529.

Line 28
Only the expenses listed next can be deducted on this line. List the type and
amount of each expense on the dotted lines
next to line 28. If you need more space,
attach a statement showing the type and
amount of each expense. Enter one total on
line 28.
• Gambling losses, but only to the extent of gambling winnings reported on
Form 1040, line 21.
• Casualty and theft losses of
income-producing property from Form
4684, lines 32 and 38b, or Form 4797, line
18a.
• Loss from other activities from
Schedule K-1 (Form 1065-B), box 2.
• Federal estate tax on income in respect of a decedent.
• Amortizable bond premium on bonds
acquired before October 23, 1986.
• Deduction for repayment of amounts
under a claim of right if over $3,000. See
Pub. 525 for details.

Itemized Deductions Worksheet—Line 29

Total Itemized
Deductions
Line 29
Use the worksheet below to figure the
amount to enter on line 29 if the amount on
Form 1040, line 38, is over $156,400
($78,200 if married filing separately).

Line 30
If you elect to itemize for state tax or other
purposes even though your itemized deductions are less than your standard deduction,
check the box on line 30.

Keep for Your Records

1. Enter the total of the amounts from Schedule A, lines 4, 9, 15, 19, 20, 27, and 28 . . . . . . . . . . . . . .
2. Enter the total of the amounts from Schedule A, lines 4, 14, and 20, plus any gambling and casualty
or theft losses included on line 28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1.
2.

Be sure your total gambling and casualty or theft losses are clearly identified on the
dotted lines next to line 28.
3. Is the amount on line 2 less than the amount on line 1?
STOP
No.
Your deduction is not limited. Enter the amount from line 1 above on Schedule A,
line 29.
Yes. Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.
4. Multiply line 3 by 80% (.80) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.
5. Enter the amount from Form 1040, line 38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.
6. Enter $156,400 ($78,200 if married filing separately) . . . . . . . . . . . . . . . . . . . . 6.
7. Is the amount on line 6 less than the amount on line 5?
STOP
No.
Your deduction is not limited. Enter the amount from line 1
above on Schedule A, line 29.
Yes. Subtract line 6 from line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.
8. Multiply line 7 by 3% (.03) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.
9. Enter the smaller of line 4 or line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.
10. Divide line 9 by 3.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
11. Subtract line 10 from line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.
12. Total itemized deductions. Subtract line 11 from line 1. Enter the result here and on Schedule A,
line 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.

A-10

Page 11 of 15 of 2007 Instructions for Schedules A & B (Form 1040) 16:56 - 2-NOV-2007
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

2007 Optional State and Certain Local Sales Tax Tables
Income
At
least

But
less
than

Exemptions
1

2

3

4

Exemptions
5

Over
5

1

2

3

4

4.0000% Arizona

Alabama

Exemptions
5

Over
5

199
300
351
395

249
374
436
490

283
425
496
556

311
466
543
609

335
501
583
654

368
550
641
717

208
345
417
480

245
406
491
565

270
446
539
621

50,000 60,000
60,000 70,000
70,000 80,000
80,000 90,000
90,000 100,000

434
469
503
534
564

538
581
622
660
696

610
659
705
748
788

668
721
771
818
862

716 786
773 848
827 906
876 960
923 1011

538
591
642
689
735

632
694
753
809
862

695 743 782 838
763 815 859 919
828 885 932 997
888 950 1000 1070
946 1011 1065 1140

603
657
704
751
794

744 842 919
809 915 999
866 979 1068
923 1043 1138
975 1101 1200

120,000
140,000
160,000
180,000
200,000

200,000 or more

Income

2

3

5.6000% Arkansas

$0 $20,000
20,000 30,000
30,000 40,000
40,000 50,000

100,000
120,000
140,000
160,000
180,000

1

289
478
577
664

304
504
608
699

326
540
651
749

310
486
576
652

376
587
694
786

421
656
775
877

4

Exemptions
5

Over
5

1

2

3
1

6.0000% California
456 485 526
710 755 819
838 891 966
948 1008 1091

248
413
501
577

292
486
588
678

321
534
647
745

4

Exemptions
5

Over
5

1

2

3

4

7.2500% Colorado

5

Over
5

2.9000%

344
572
692
797

363
603
729
839

389
645
780
899

95
156
188
217

113
185
223
256

124
204
246
282

134
219
264
302

141
231
278
319

152
248
299
343

647 760 835 892
712 835 917 981
774 907 996 1065
831 975 1070 1144
887 1039 1141 1219

940
1033
1121
1204
1283

1006
1105
1200
1288
1373

242
266
289
310
330

286
314
340
365
389

315
346
375
402
428

338
371
402
431
459

357
391
424
454
484

383
419
454
487
519

1319
1458
1581
1705
1818

1388
1535
1664
1794
1913

1485
1641
1779
1918
2045

357
394
428
461
491

420
464
503
542
578

463
511
553
596
635

496
547
592
638
679

522
576
624
672
716

560
618
669
720
767

1010 1236 1392 1515 1619 1766 1443 1688 1850 1974 2077 2219 1719 2053 2279 2456 2603 2811 1755 2050 2246 2396 2520 2692

648

760

834

892

939 1005

Connecticut

985
1070
1144
1217
1284

1078 795 932
1170 879 1030
1251 953 1116
1331 1027 1203
1403 1095 1283

1023
1130
1225
1320
1407

1094
1208
1309
1410
1502

6.0000% District of Columbia

1151
1271
1377
1484
1581

1232
1360
1473
1587
1691

721 868 968 1046
783 942 1051 1135
842 1013 1129 1220
897 1078 1201 1297
949 1140 1270 1371
1017
1111
1193
1275
1349

1221
1333
1430
1527
1615

1360
1483
1591
1699
1796

1468
1601
1717
1832
1937

1111
1206
1295
1378
1456

1204
1306
1402
1491
1575

1558
1699
1822
1944
2054

1686
1837
1969
2101
2220

960
1062
1153
1244
1328

1125
1244
1350
1456
1553

1235
1365
1481
1597
1703

6.0000% Georgia

5.7500% Florida

4.0000% Hawaii

4.0000%

$0 $20,000
20,000 30,000
30,000 40,000
40,000 50,000

210
348
421
484

241
399
482
554

261
433
522
600

277
458
553
635

307
508
612
703

176
292
354
408

204
339
410
472

223
370
447
514

238
393
475
546

250
413
498
573

266
440
531
610

217
355
428
491

261
426
512
588

290
474
570
653

360
585
703
805

143
235
283
324

168
274
330
379

184
301
362
415

197
321
386
443

207
338
406
466

221
361
434
497

232
359
424
478

284
438
516
582

320
493
580
654

50,000 60,000
60,000 70,000
70,000 80,000
80,000 90,000
90,000 100,000

541
594
644
690
735

619
679
736
789
840

671
735
797
854
909

710 741 785
778 813 861
843 880 933
903 944 999
961 1004 1063

456
501
544
585
623

528
580
629
675
719

575
631
685
735
783

611
671
728
781
832

641
703
763
818
871

682
748
811
870
927

549
602
653
700
745

656
719
779
835
888

728 785 831 897
798 859 911 982
864 931 986 1063
926 997 1056 1139
985 1061 1123 1211

363
398
431
462
492

423
464
503
539
574

463
508
550
590
628

494
542
587
629
669

520
569
617
661
703

555
608
658
706
751

528
572
614
653
690

641
695
746
792
837

720 781 833 906
780 846 902 980
836 907 966 1051
888 963 1026 1115
937 1017 1083 1177

120,000 793 907
140,000 875 999
160,000 946 1081
180,000 1018 1162
200,000 1083 1236

981
1081
1168
1256
1336

532
587
636
685
730

620
684
740
797
849

678
748
810
872
928

723 759 810
797 837 893
863 906 967
928 975 1040
988 1038 1107

100,000
120,000
140,000
160,000
180,000

200,000 or more

Income

1037
1143
1235
1328
1412

Idaho
423
642
752
845

464
702
821
923

50,000 60,000
60,000 70,000
70,000 80,000
80,000 90,000
90,000 100,000

666 821 929
721 889 1005
774 953 1077
823 1012 1143
869 1068 1206

1014
1097
1175
1247
1315
1406
1529
1638
1746
1844

200,000 or more

Income

1147
1263
1365
1467
1560

674 778 847 899 942 1001 805 959
744 859 935 992 1039 1105 888 1058
807 931 1012 1074 1125 1196 962 1145
870 1003 1090 1157 1212 1288 1036 1232
927 1068 1161 1232 1291 1371 1104 1312

6.0000% Illinois

300
457
537
605

120,000
140,000
160,000
180,000
200,000

1083
1193
1290
1387
1474

1064
1172
1268
1365
1453

314
511
614
703

1145
1261
1364
1468
1562

333
542
651
746

1212
1335
1444
1553
1652

1306
1438
1555
1672
1779

1412 1610 1739 1837 1917 2028 1219 1403 1523 1616 1691 1796 1449 1719 1901 2042 2158 2322

$0 $20,000
20,000 30,000
30,000 40,000
40,000 50,000

100,000
120,000
140,000
160,000
180,000

290
479
578
664

931
1015
1089
1163
1231

373
566
663
747

1143
1245
1334
1424
1505

1290
1404
1504
1604
1694

6.2500% Indiana
346
561
672
769

366
592
710
812

5.0000% Kansas

246
400
480
550

292
474
568
650

394
636
762
872

230
373
447
511

272
440
527
602

301
485
580
662

365
588
702
802

208
340
408
467

245
399
478
547

269
438
525
601

288
468
561
642

1086
1174
1257
1334
1407

1188
1284
1374
1458
1537

613
671
727
779
828

725 799 857 905 971
793 875 938 989 1062
858 946 1014 1070 1149
919 1013 1086 1146 1229
977 1077 1154 1218 1306

569
622
673
720
765

670
732
791
846
899

737 789 831 891
805 862 908 973
870 931 981 1051
930 995 1049 1123
988 1056 1113 1192

520
569
616
659
700

609
666
720
771
818

669
731
790
845
897

714 752 804
781 821 878
843 888 949
902 949 1015
958 1008 1077

1503
1635
1750
1865
1969

1642 894 1054 1162
1785 985 1161 1279
1910 1065 1255 1382
2035 1146 1350 1486
2147 1219 1436 1581

1245
1370
1480
1591
1692

1313
1445
1561
1678
1784

1408 824 968
1550 906 1064
1674 979 1148
1799 1051 1232
1913 1117 1309

1064
1169
1261
1353
1437

322
519
621
709

1137
1249
1348
1446
1536

340
548
655
748

1198
1316
1419
1523
1617

738 895 1002 1087
805 974 1091 1182
863 1044 1168 1266
920 1113 1245 1349
972 1175 1314 1423

371
572
672
757

1157
1259
1347
1435
1515

405
622
731
823

1257
1367
1463
1558
1644

958 1114 1216 1295 1359 1449 1232 1485 1658 1794 1908 2069

6.0000% Iowa

498 546
753 825
880 964
989 1082

323
523
627
717

348
536
630
710

1283 754 882 966 1031
1409 829 969 1062 1133
1519 895 1045 1145 1222
1630 961 1122 1229 1311
1730 1021 1191 1305 1392

304
493
591
675

1085
1191
1285
1379
1463

325
528
632
723

287
443
522
589

352
543
638
720

5.3000%
398
612
719
810

434
666
782
881

464 507
711 776
835 910
940 1025

650 793 891 969 1034
705 859 965 1049 1119
756 921 1035 1124 1199
804 979 1099 1194 1273
849 1033 1160 1259 1343

1160 909 1105 1240
1273 991 1203 1349
1373 1062 1288 1444
1473 1133 1374 1539
1563 1197 1450 1625

1346
1464
1567
1670
1762

1435
1560
1670
1779
1877

1127
1219
1306
1386
1462
1561
1697
1816
1933
2039

1570 1912 2149 2335 2491 2712 1595 1875 2063 2207 2326 2492 1450 1697 1861 1987 2091 2236 1323 1541 1686 1798 1889 2017 1517 1833 2050 2220 2363 2565

Kentucky

6.0000% Louisiana

4.0000% Maine

5.0000% Maryland

5.0000% Massachusetts

5.0000%

$0 $20,000
20,000 30,000
30,000 40,000
40,000 50,000

218
352
422
483

257
415
497
568

283
456
546
624

303
488
584
668

343
551
659
753

160
263
317
364

186
306
368
423

203
334
402
461

217
356
428
491

227
373
449
515

243
398
479
549

145
241
292
337

171
284
343
395

188
312
377
434

202
334
403
464

213
352
425
489

228
377
455
523

186
308
372
428

218
361
436
501

239
396
478
549

256
423
510
586

269
445
537
617

288
475
574
659

161
266
322
370

187
308
372
428

204
336
406
467

217
358
431
496

228
375
452
520

242
399
481
553

50,000 60,000
60,000 70,000
70,000 80,000
80,000 90,000
90,000 100,000

539
590
638
684
727

633
692
749
802
852

695
760
822
880
935

743 783 838
813 856 916
879 925 990
941 990 1060
999 1052 1126

407
446
483
518
551

472
517
561
601
639

515
564
611
655
697

548
600
650
697
741

575
630
682
731
777

613
671
726
778
827

378
416
452
486
518

443
487
529
569
607

487
535
581
624
665

520
571
621
667
711

548
602
653
702
748

586
644
699
750
800

479
526
571
612
652

560
615
667
716
762

614
674
731
784
835

656
719
780
836
890

690 737
756 808
820 876
880 940
936 1000

415
455
494
531
566

479
527
571
613
654

522
573
622
668
711

555
609
661
709
755

581
638
692
743
791

619
679
736
790
841

120,000 784 919
140,000 864 1012
160,000 934 1094
180,000 1005 1176
200,000 1070 1251

1009
1110
1200
1290
1372

596
656
710
764
813

690 752 800 839 893
760 828 880 923 983
822 895 952 998 1062
884 963 1023 1073 1142
940 1024 1088 1141 1214

561
621
675
729
778

657
727
789
852
909

720 769 809 865
797 851 895 957
865 923 971 1038
933 996 1047 1119
996 1062 1117 1194

705 823 902
778 908 995
842 984 1077
907 1059 1160
966 1128 1235

962
1061
1149
1237
1317

612
677
734
792
844

707 769 816 855
781 849 901 944
846 920 977 1023
912 992 1052 1102
973 1057 1121 1174

909
1003
1087
1171
1247

100,000
120,000
140,000
160,000
180,000

200,000 or more

Income

1078
1186
1281
1377
1464

320
514
616
703

1134
1248
1348
1449
1540

1213
1334
1441
1549
1647

Michigan

6.0000% Minnesota

6.5000% Mississippi

224
373
452
520

261
434
525
605

341
566
683
786

209
354
431
498

241
408
496
573

262
443
538
621

50,000 60,000
60,000 70,000
70,000 80,000
80,000 90,000
90,000 100,000

583
640
695
747
796

677 739 787 826 880
744 812 864 907 966
807 881 938 984 1049
867 946 1007 1057 1126
924 1008 1073 1126 1199

560
616
670
721
769

643
707
769
827
882

697 739 773 820 877
767 813 850 902 950
834 883 924 980 1020
896 949 993 1053 1085
956 1012 1059 1122 1146

286
474
574
660

120,000 861 1000 1091
140,000 952 1105 1205
160,000 1032 1198 1306
180,000 1113 1291 1408
200,000 1187 1376 1501

200,000 or more

1081
1192
1290
1388
1478

1399 1634 1790 1909 2007 2144 1061 1226 1334 1417 1485 1579 1032 1203 1317 1404 1476 1576 1267 1477 1616 1723 1811 1932 1113 1280 1390 1474 1543 1638

$0 $20,000
20,000 30,000
30,000 40,000
40,000 50,000

100,000
120,000
140,000
160,000
180,000

1012
1116
1208
1300
1384

305
505
611
703

1160
1282
1389
1498
1596

320
531
641
738

1218
1345
1457
1571
1674

1297 833 955 1035
1432 922 1057 1145
1552 1000 1146 1242
1672 1079 1236 1339
1782 1151 1318 1428

278
469
570
658

1096
1212
1314
1417
1511

292
491
597
689

1146
1267
1374
1481
1579

310
522
633
731

1215
1343
1456
1570
1673

387
598
704
795

1226
1336
1432
1528
1614

7.0000% Missouri

473 533 579 619 674
729 819 890 950 1034
857 963 1045 1115 1213
967 1085 1178 1255 1365

4.2250% Nebraska

194
309
368
419

218
346
412
469

236
375
446
507

252
399
474
540

274
433
514
585

230
381
459
527

266
439
530
608

290
478
576
661

520
568
612
654
694

563
614
662
707
750

598
652
704
751
797

649
707
762
814
863

589
646
700
750
798

679
744
806
864
919

738 783 820 870
809 858 898 954
876 929 972 1033
938 995 1042 1106
998 1058 1108 1176

1065
1154
1237
1315
1388

1194
1293
1386
1472
1554

1296
1403
1503
1597
1685

1381
1495
1601
1700
1794

1501
1624
1740
1847
1948

386
421
455
487
517

466
508
549
586
622

1484
1616
1731
1845
1948

1661
1808
1935
2062
2177

1800
1958
2096
2233
2356

1916
2084
2230
2376
2506

2081
2262
2420
2577
2719

557
612
661
710
755

670 747 807 857
736 820 885 940
794 884 955 1013
852 949 1024 1087
905 1007 1087 1153

1565 1812 1975 2099 2201 2343 1518 1736 1878 1987 2076 2198 2045 2461 2746 2970 3156 3420

5.5000%

160
255
304
347

927 861 992 1077
1017 949 1092 1186
1096 1026 1180 1281
1175 1103 1269 1377
1247 1173 1349 1464

307
507
611
701

1142
1257
1359
1460
1552

322
531
640
734

1195
1316
1422
1528
1624

342
564
680
780

1269
1397
1509
1621
1723

983 1175 1305 1407 1491 1610 1527 1755 1904 2017 2110 2238

(Continued on next page)

A-11

Page 12 of 15 of 2007 Instructions for Schedules A & B (Form 1040) 16:56 - 2-NOV-2007
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

2007 Optional State and Certain Local Sales Tax Tables (Continued)
Income
At
least

But
less
than

Exemptions
1

2

3

4

307
504
607
697

327
536
646
742

Exemptions
5

Over
5

1

2

3

4
4

2

6.5000% New Jersey

Nevada

Exemptions
5

Over
5

1

2

3

4

7.0000% New Mexico

Exemptions
5

Over
5

1

2

3

4

5.0000% New York

Exemptions
5

Over
5

1

2

3

4

5

4.0000% North Carolina

Over
5

4.2500%

$0 $20,000
20,000 30,000
30,000 40,000
40,000 50,000

242
398
479
551

281
462
557
639

343
563
678
778

366
600
722
829

252
416
501
576

290
478
576
661

371
610
734
842

223
367
442
507

259
425
512
587

282
463
558
639

335
550
662
758

144
238
287
330

166
274
330
379

180
297
358
411

191
315
379
435

200
329
397
455

212
349
421
482

171
278
334
383

202
328
394
451

223
362
434
496

239
388
465
531

252
409
490
560

271
439
526
601

50,000 60,000
60,000 70,000
70,000 80,000
80,000 90,000
90,000 100,000

616
676
733
786
837

714 779 829 870
784 855 909 953
850 927 985 1033
911 994 1057 1108
970 1058 1125 1180

926
1015
1100
1180
1256

643
705
763
818
870

737 799 847 885 939
808 876 927 969 1028
875 948 1004 1049 1112
937 1015 1075 1124 1191
997 1080 1143 1194 1266

566
620
671
719
765

655
717
776
832
884

713 758 795 845
781 830 870 926
846 898 942 1001
905 962 1008 1072
962 1022 1071 1139

369
404
438
470
500

423
464
502
538
572

459
502
544
583
620

486
532
576
617
656

508
556
602
645
686

538
590
638
684
727

427
467
505
541
575

502
549
594
636
676

553
605
654
699
743

592
647
700
748
795

624
682
737
789
838

669
731
790
845
898

1356
1496
1619
1743
1856

939
1034
1118
1202
1278

539
594
643
691
735

618
680
735
790
840

669
736
796
855
909

708 740 784
779 814 862
842 879 932
904 945 1001
961 1004 1064

620
682
737
792
842

728 801 857 903 967
801 880 942 992 1062
865 951 1016 1071 1146
929 1021 1091 1149 1231
987 1084 1159 1221 1307

100,000
120,000
140,000
160,000
180,000

120,000 905 1049 1143
140,000 999 1157 1261
160,000 1082 1253 1366
180,000 1166 1350 1471
200,000 1243 1438 1566

200,000 or more

Income

1215
1341
1452
1563
1665

1274
1406
1522
1639
1745

1075
1184
1279
1375
1461

315
518
624
716

1164
1282
1385
1488
1581

334
549
662
759

1232
1356
1465
1574
1672

350
575
692
793

1288
1417
1531
1644
1747

1365 825 954
1501 908 1049
1621 981 1133
1742 1055 1218
1850 1121 1294

1038
1142
1233
1325
1408

300
493
593
680

1102
1213
1310
1407
1495

315
517
622
713

1155
1271
1372
1474
1566

1228
1351
1459
1567
1665

1633 1888 2055 2183 2288 2433 1663 1899 2053 2170 2266 2399 1456 1680 1826 1938 2030 2157

North Dakota 5.0000% Ohio

5.5000% Oklahoma

956 1092 1181 1248 1304 1380 1094 1282 1407 1503 1582 1692

4.5000% Pennsylvania

6.0000% Rhode Island

7.0000%

$0 $20,000
20,000 30,000
30,000 40,000
40,000 50,000

183
302
364
418

218
358
431
495

242
396
476
547

260
425
511
587

275
449
540
620

296
483
581
666

222
367
442
509

256
423
511
587

279
460
555
638

330
544
656
753

222
349
414
471

271
426
505
573

305
479
567
643

386
604
714
809

199
335
406
469

229
384
466
538

248
416
505
583

263
441
535
617

275
461
559
645

292
489
593
684

243
406
491
565

277
460
556
640

50,000 60,000
60,000 70,000
70,000 80,000
80,000 90,000
90,000 100,000

468
513
557
598
637

553
607
658
706
752

611
670
726
778
829

655
718
778
834
888

692 743
758 814
822 882
881 945
937 1006

569
624
676
725
772

656
719
779
836
889

713 756 792 841
781 829 868 922
847 898 940 999
908 963 1008 1071
966 1025 1073 1139

521
568
612
653
692

634
690
743
792
839

711 772 822 894
773 839 894 972
833 903 962 1045
888 962 1025 1113
940 1019 1085 1178

526
579
629
676
721

603
663
721
774
825

653
718
780
838
893

692
760
826
887
945

723 766
795 842
863 914
927 982
988 1046

633
695
754
809
862

717 771 812 846 892
787 846 891 928 978
854 918 967 1006 1061
916 985 1037 1080 1138
976 1049 1104 1150 1212

689 812 895
761 897 988
825 972 1070
890 1047 1152
948 1115 1227

959
1058
1145
1233
1313

1264 781 893
1381 863 987
1485 936 1070
1588 1010 1154
1682 1077 1230

967
1068
1158
1248
1330

1023
1130
1225
1320
1406

100,000
120,000
140,000
160,000
180,000

120,000
140,000
160,000
180,000
200,000

200,000 or more

Income

1012
1116
1208
1300
1385

1086 834 960
1197 920 1059
1295 996 1146
1394 1072 1233
1484 1141 1312

1043
1150
1244
1338
1424

296
489
589
677

1106
1219
1319
1419
1509

310
512
617
709

1158
1276
1380
1484
1579

1229
1355
1465
1575
1676

332
520
616
698

744 901 1009 1093
816 987 1104 1196
879 1062 1188 1286
942 1138 1272 1377
999 1206 1348 1459

355
555
656
744

1164
1273
1369
1464
1551

South Carolina3 5.5863% South Dakota 4.0000% Tennessee

7.0000% Texas

243
393
471
538

291
469
561
640

399
640
764
871

222
343
405
457

271
419
493
556

306
471
554
625

333
512
602
678

50,000 60,000
60,000 70,000
70,000 80,000
80,000 90,000
90,000 100,000

598
654
706
755
802

712 789 849 898 968
778 862 927 980 1056
840 930 1000 1058 1140
898 994 1069 1131 1217
953 1055 1134 1200 1291

504
547
587
624
659

613
664
712
757
799

688
745
799
849
896

747 796 866 822 998
809 862 937 893 1083
867 924 1004 959 1163
921 981 1066 1021 1237
972 1035 1125 1080 1307

1119
1213
1302
1385
1463

1213
1315
1412
1501
1585

1293
1401
1503
1598
1687

1405
1522
1633
1735
1832

1400
1527
1638
1749
1849

1566
1707
1830
1953
2064

1696
1848
1981
2114
2233

1805
1966
2107
2248
2375

1959
2134
2286
2437
2574

323
521
622
710

120,000 864 1026 1135
140,000 949 1127 1246
160,000 1024 1215 1344
180,000 1099 1304 1441
200,000 1167 1384 1529

200,000 or more

Income

348
560
670
764

1220
1339
1443
1548
1642

369
594
709
808

1291
1416
1526
1636
1736

1389
1524
1642
1760
1867

705 855 958
769 931 1043
824 998 1116
880 1064 1190
930 1123 1256

1038
1130
1210
1289
1360

356
547
642
723

1106
1203
1288
1372
1448

388
595
699
787

1202
1307
1398
1489
1571

5
6.0000% Virginia

Vermont
176
298
363
420

186
316
385
445

195
330
402
465

201
341
415
480

210
356
433
501

198
315
376
429

239
380
452
515

267
423
504
573

289
457
544
619

307
486
578
657

50,000 60,000
60,000 70,000
70,000 80,000
80,000 90,000
90,000 100,000

426
470
511
550
587

472
520
566
609
650

501
552
600
646
690

522
575
626
674
719

540
595
647
696
743

563
621
675
727
776

476
520
562
600
637

572
624
673
719
763

636
694
749
800
848

687
749
808
862
915

729 788
794 858
857 925
915 988
970 1047

637
705
766
827
883

705 748 780 806 841
780 828 864 892 931
848 899 938 969 1011
915 971 1013 1046 1092
977 1036 1081 1117 1165

686 821 913
754 902 1001
814 973 1080
874 1044 1158
929 1108 1230

984
1079
1163
1247
1324

200,000 or more

Income

Wyoming

4.0000%

156
256
309
354

183
300
361
414

201
329
396
454

214
351
423
485

226
370
445
510

242
396
476
545

50,000 60,000
60,000 70,000
70,000 80,000
80,000 90,000
90,000 100,000

396
434
470
504
536

463
507
549
588
626

507
555
601
644
685

541
593
642
687
731

569
623
675
723
768

608
666
721
772
820

579
638
690
743
790

675 739 788 829 885
744 814 868 912 974
804 880 938 986 1052
865 946 1008 1060 1131
920 1006 1072 1127 1202

120,000
140,000
160,000
180,000
200,000

200,000 or more

1054
1164
1260
1357
1444

1134
1251
1354
1458
1552

1193
1317
1425
1534
1633

1242
1370
1483
1596
1699

346
574
693
797

1309
1444
1563
1682
1790

1157
1264
1357
1450
1534

438 493 537 573 625
679 763 829 884 962
801 899 976 1040 1132
905 1015 1101 1174 1276

6.2500% Utah

4.7500%

352
575
691
791

371
606
728
834

398
650
781
894

226
362
432
492

270
431
513
584

300
477
568
647

637 749 824 881
698 820 901 964
755 887 975 1043
809 950 1044 1116
860 1009 1109 1186

929
1016
1099
1176
1250

995
1089
1178
1260
1338

546
596
643
687
728

648
707
762
814
862

717 770 815 876
781 839 887 955
842 905 956 1028
899 965 1020 1097
953 1023 1081 1162

1347
1480
1598
1716
1822

1442 783
1585 859
1710 925
1836 992
1950 1052

927
1016
1094
1172
1242

252
414
498
571

927
1021
1103
1185
1260

298
487
586
672

1088
1197
1293
1389
1476

328
537
645
739

1196
1315
1420
1524
1620

1278
1406
1517
1629
1731

1024
1122
1207
1293
1370

323
513
611
695

1099
1203
1295
1387
1469

342
543
646
735

1161
1271
1368
1464
1551

368
585
696
791

1248
1366
1469
1573
1666

1043
1144
1232
1321
1402

332
526
625
710

1126
1234
1330
1425
1512

269
445
536
616

313
517
623
715

6.5000% West Virginia

342
564
680
780

364
601
724
830

383
631
760
872

408
672
809
929

688 799 871
755 875 955
818 948 1034
876 1016 1108
932 1081 1178

927
1016
1100
1178
1253

973
1066
1154
1236
1315

1036
1135
1229
1316
1400

1352
1488
1608
1729
1838

1418
1561
1687
1813
1927

1510
1662
1795
1929
2050

1006
1109
1199
1289
1371

1166
1284
1388
1492
1587

1271
1400
1513
1626
1729

307
485
575
653

368
579
687
779

410
644
762
864

6.0000% Wisconsin

442
694
821
931

469 507
735 794
870 939
986 1063

5.0000%

207
342
412
473

240
395
476
546

261
430
517
593

278
456
549
630

291
478
575
660

528
578
626
671
714

609
667
722
774
823

662
725
785
841
894

703
770
833
892
948

736 782
806 856
872 927
934 992
993 1055

723 862 956 1029
787 937 1039 1119
847 1009 1118 1203
903 1075 1191 1281
956 1138 1261 1356

1090
1184
1274
1356
1435

1175
1277
1373
1462
1546

1454
1588
1706
1824
1930

1538
1680
1805
1929
2040

1657 770 887 964 1023
1809 848 977 1061 1126
1943 916 1055 1147 1216
2076 985 1134 1232 1306
2196 1047 1206 1309 1388

1027
1123
1208
1293
1369

1221
1335
1435
1534
1624

1352
1478
1587
1697
1796

1071
1178
1273
1367
1453

310
508
612
701

1137
1251
1352
1452
1543

1169 1292 1371 1429 1476 1540 1208 1437 1592 1712 1812 1952 1785 2064 2247 2388 2503 2662 1754 2077 2294 2462 2601 2797 1362 1566 1700 1802 1886 2001

$0 $20,000
20,000 30,000
30,000 40,000
40,000 50,000

100,000
120,000
140,000
160,000
180,000

358
557
658
745

5.0000% Washington

158
269
327
379

120,000
140,000
160,000
180,000
200,000

932
1029
1114
1200
1278

327
544
657
756

1511 1788 1974 2119 2238 2405 1178 1420 1586 1716 1824 1978 1956 2351 2620 2831 3007 3256 1636 1914 2099 2241 2359 2523 1355 1598 1760 1886 1990 2135

$0 $20,000
20,000 30,000
30,000 40,000
40,000 50,000

100,000
120,000
140,000
160,000
180,000

1132
1250
1354
1459
1554

314
522
631
726

1250 1467 1611 1723 1815 1944 1491 1713 1858 1969 2059 2185 1291 1553 1732 1872 1989 2154 1417 1616 1747 1846 1927 2038 1674 1890 2030 2136 2221 2339

$0 $20,000
20,000 30,000
30,000 40,000
40,000 50,000

100,000
120,000
140,000
160,000
180,000

1068
1180
1279
1378
1468

298
495
599
689

Note. Alaska does not have a state sales tax. Alaska residents should follow the instructions on the next page to
determine their local sales tax amount.
The California table includes the 1% uniform local sales tax rate in additon to the 6.25% state sales tax rate.
The Nevada table includes the 2.25% uniform local sales tax rate in addition to the 4.25% state sales tax rate.
3 The rate for South Carolina increased during 2007, so the rate given is averaged over the year.
4 Residents of Salem County should deduct only half of the amount in the state table.
5 The state and local general sales taxes are combined in the Virginia table.
1
2

1032 1199 1310 1395 1465 1563

A-12

Page 13 of 15 of 2007 Instructions for Schedules A & B (Form 1040) 16:56 - 2-NOV-2007
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Which Optional Local Sales Tax Table Should I Use?
IF you live in
the state of...

AND you live in...

THEN use
Local Table...

Alaska

Any locality

C

Arizona
Arkansas

Any locality
Texarkana

C
B

California

Los Angeles County
City of Denver

B
B

Arvada, Aurora, City of Boulder, Centennial, Colorado Springs, Fort Collins, Greeley, Jefferson County,
Lakewood, Longmont, City of Pueblo, Thornton, or Westminster

C

Boulder County, Denver County, Pueblo County, or any other locality

A
B

Colorado

Georgia

DeKalb County, Rockdale County, Taliaferro County, or Webster
Any other locality
Any locality
Any locality
New York City, or one of the following counties: Albany, Allegany, Cattaraugus, Cayuga, Chemung,
Clinton, Cortland, Erie, Essex, Franklin, Fulton, Genesee, Herkimer, Jefferson, Lewis, Livingston,
Madison, Monroe, Montgomery, Nassau, Niagara, Oneida, Onondaga, Ontario, Orange, Orleans,
Oswego, Otsego, Putnam, Rensselaer, Rockland, St. Lawrence, Saratoga, Schenectady, Schoharie,
Seneca, Steuben, Suffolk, Sullivan, Tompkins, Ulster, Warren, Washington, Westchester, Wyoming, or
Yates

Illinois
Louisiana
New York

Any other locality
Any locality

North Carolina

D
C

2007 Optional Local Sales Tax Tables for Certain Local Jurisdictions
(Based on a local sales tax rate of 1 percent)
Income

At
least

But
less
than

$0 $20,000
30,000
20,000
40,000
30,000
50,000
40,000
60,000
50,000
70,000
60,000
80,000
70,000
90,000
80,000
90,000 100,000
100,000 120,000
120,000 140,000
140,000 160,000
160,000 180,000
180,000 200,000
200,000 or more

At
least

But
less
than

$0 $20,000
30,000
20,000
40,000
30,000
50,000
40,000
60,000
50,000
70,000
60,000
80,000
70,000
90,000
80,000
90,000 100,000
100,000 120,000
120,000 140,000
140,000 160,000
160,000 180,000
180,000 200,000
200,000 or more

Local Table B

Local Table A
Exemptions

Exemptions

1

2

3

4

5

33
54
65
75
84
92
100
107
114

39
64
77
88
99
108
117
126
134

43
70
85
97
109
119
129
139
148

46
75
91
104
117
128
139
149
158

49
80
96
110
123
135
146
157
167

123
136
147
159
169
223

145
160
173
187
199
262

160
176
191
206
219
288

171
189
204
220
234
308

180
199
215
232
247
324

Income

C
C
C
B

Over
5

1

52
86
103
118
132
145
157
168
179
193
213
231
248
264
347

2

3

4

5

40
65
78
89

48
77
93
106

53
86
103
117

57
93
111
126

61
98
117
134

99
108
117
125
133
143
158
170
183
194
252

118
129
139
149
158
170
187
202
217
230
298

130
143
154
165
175
188
207
223
239
254
329

140
153
165
177
188
202
222
239
257
273
352

148
162
175
187
199
214
235
253
271
288
372

Over
5

66
106
126
144
160
175
188
201
214
230
252
272
292
310
400

Local Table D

Local Table C
Exemptions

Exemptions
Over
5

1

2

3

4

5

53
82
96
108
119
129
139
147
156

65
100
117
132
145
157
169
179
189

74
112
132
149
163
177
190
201
213

80
122
143
161
178
192
206
219
231

86
131
153
172
189
205
220
233
246

93
142
167
188
206
223
239
254
267

167
182
195
208
220
280

203
221
237
252
267
338

227
247
265
283
298
378

247
268
287
306
323
409

263
286
306
326
344
435

286
311
332
354
374
472

1

2

36
60
72
83
92
101
110
118
125
135
149
161
173
184
239

Over
5

3

4

5

42
69
83
95

45
74
90
103

48
79
95
109

50
82
99
114

53
87
105
121

106
116
126
135
143
155
170
184
198
210
273

115
126
136
146
155
167
184
199
214
227
295

122
133
144
154
164
177
195
211
226
240
312

127
139
151
161
172
185
204
220
236
251
326

135
148
160
171
182
196
216
233
250
266
345

A-13

Page 14 of 15 of 2007 Instructions for Schedules A & B (Form 1040) 16:56 - 2-NOV-2007
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Instructions for
Schedule B,
Interest and
Ordinary
Dividends

Use Schedule B (Form 1040) if any of the following applies.
• You had over $1,500 of taxable interest.
• Any of the Special Rules listed in the instructions for line 1 apply to you.
• You are claiming the exclusion of interest from series EE or I U.S. savings bonds issued
after 1989.
• You had over $1,500 of ordinary dividends.
• You received ordinary dividends as a nominee.
• You had a foreign account or you received a distribution from, or were a grantor of, or
transferor to, a foreign trust. Part III of the schedule has questions about foreign accounts and
trusts.

You can list more than one
payer on each entry space for
lines 1 and 5, but be sure to
clearly show the amount paid
next to the payer’s name. Add the separate
amounts paid by the payers listed on an
entry space and enter the total in the
“Amount” column. If you still need more
space, attach separate statements that are
the same size as the printed schedule. Use
the same format as lines 1 and 5, but show
your totals on Schedule B. Be sure to put
your name and social security number
(SSN) on the statements and attach them at
the end of your return.

low this subtotal, enter “Nominee Distribution” and show the total interest you
received as a nominee. Subtract this
amount from the subtotal and enter the result on line 2.

TIP

Part I. Interest
Line 1
Interest
Report on line 1 all of your taxable interest.
Interest should be shown on your Forms
1099-INT, Forms 1099-OID, or substitute
statements. Include interest from series EE
and I U.S. savings bonds. List each payer’s
name and show the amount.

Special Rules
Seller-Financed Mortgages
If you sold your home or other property and
the buyer used the property as a personal
residence, list first any interest the buyer
paid you on a mortgage or other form of
seller financing. Be sure to show the
buyer’s name, address, and SSN. You must
also let the buyer know your SSN. If you do
not show the buyer’s name, address, and
SSN, or let the buyer know your SSN, you
may have to pay a $50 penalty.

If you received interest as a
nominee, you must give the actual owner a Form 1099-INT
unless the owner is your
spouse. You must also file a Form 1096 and
a Form 1099-INT with the IRS. For more
details, see the General Instructions for
Forms 1099, 1098, 5498, and W-2G and
the Instructions for Forms 1099-INT and
1099-OID.

TIP

Accrued Interest
When you buy bonds between interest payment dates and pay accrued interest to the
seller, this interest is taxable to the seller. If
you received a Form 1099 for interest as a
purchaser of a bond with accrued interest,
follow the rules earlier under Nominees to
see how to report the accrued interest on
Schedule B. But identify the amount to be
subtracted as “Accrued Interest.”

Original Issue Discount (OID)
If you are reporting OID in an amount less
than the amount shown on Form
1099-OID, follow the rules earlier under
Nominees to see how to report the OID on
Schedule B. But identify the amount to be
subtracted as “OID Adjustment.”

Amortizable Bond Premium
If you are reducing your interest income on
a bond by the amount of amortizable bond
premium, follow the rules earlier under
Nominees to see how to report the interest
on Schedule B. But identify the amount to
be subtracted as “ABP Adjustment.”

Nominees
If you received a Form 1099-INT that includes interest you received as a nominee
(that is, in your name, but the interest actually belongs to someone else), report the
total on line 1. Do this even if you later
distributed some or all of this income to
others. Under your last entry on line 1, put a
subtotal of all interest listed on line 1. Be-

you paid qualified higher education expenses for yourself, your spouse, or your
dependents, you may be able to exclude
part or all of the interest on those bonds.
See Form 8815 for details.

Line 3
Excludable Interest on
Series EE and I U.S. Savings
Bonds Issued After 1989
If, during 2007, you cashed series EE or I
U.S. savings bonds issued after 1989 and

B-1

Part II. Ordinary
Dividends
You may have to file Form
5471 if, in 2007, you were an
officer or director of a foreign
corporation. You may also have
to file Form 5471 if, in 2007, you owned
10% or more of the total (a) value of a
foreign corporation’s stock, or (b) combined voting power of all classes of a foreign corporation’s stock with voting rights.
For details, see Form 5471 and its instructions.

TIP

Line 5
Ordinary Dividends
Report on line 5 all of your ordinary dividends. This amount should be shown in box
1a of your Forms 1099-DIV or substitute
statements. List each payer’s name and
show the amount.

Nominees
If you received a Form 1099-DIV that includes ordinary dividends you received as a
nominee (that is, in your name, but the ordinary dividends actually belong to someone
else), report the total on line 5. Do this even
if you later distributed some or all of this
income to others. Under your last entry on
line 5, put a subtotal of all ordinary dividends listed on line 5. Below this subtotal,
enter “Nominee Distribution” and show the
total ordinary dividends you received as a
nominee. Subtract this amount from the
subtotal and enter the result on line 6.

Page 15 of 15 of 2007 Instructions for Schedules A & B (Form 1040) 16:56 - 2-NOV-2007
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

If you received dividends as a
nominee, you must give the actual owner a Form 1099-DIV
unless the owner is your
spouse. You must also file a Form 1096 and
a Form 1099-DIV with the IRS. For more
details, see the General Instructions for
Forms 1099, 1098, 5498, and W-2G and
the Instructions for Form 1099-DIV.

TIP

Part III. Foreign
Accounts and Trusts
Lines 7a and 7b
Foreign Accounts
Line 7a
Check the “Yes” box on line 7a if either (1)
or (2) below applies.
1. You own more than 50% of the stock
in any corporation that owns one or more
foreign bank accounts.
2. At any time during 2007 you had an
interest in or signature or other authority
over a financial account in a foreign country (such as a bank account, securities account, or other financial account).

TIP

For line 7a, item (2) does not
apply to foreign securities held
in a U.S. securities account.

• The combined value of the accounts
was $10,000 or less during the whole year.
• The accounts were with a U.S. military banking facility operated by a U.S.
financial institution.
• You were an officer or employee of a
commercial bank that is supervised by the
Comptroller of the Currency, the Board of
Governors of the Federal Reserve System,
or the Federal Deposit Insurance Corporation; the account was in your employer’s
name; and you did not have a personal financial interest in the account.
• You were an officer or employee of a
domestic corporation with securities listed
on national securities exchanges or with
assets of more than $10 million and 500 or
more shareholders of record; the account
was in your employer’s name; you did not
have a personal financial interest in the account; and the corporation’s chief financial
officer has given you written notice that the
corporation has filed a current report that
includes the account.
See Form TD F 90-22.1 to find out if
you are considered to have an interest in or
signature or other authority over a financial
account in a foreign country (such as a bank
account, securities account, or other financial account). You can get Form TD F
90-22.1 by visiting the IRS website at
www.irs.gov/pub/irs-pdf/f90221.pdf.
If you checked the “Yes” box on line 7a,
file Form TD F 90-22.1 by June 30, 2008,
with the Department of the Treasury at the
address shown on that form. Do not attach
it to Form 1040.

Exceptions. Check the “No” box if any of
the following applies to you.

B-2
Printed on recycled paper

If you are required to file Form
TD F 90-22.1 but do not do so,
you may have to pay a penalty
of up to $10,000 (more in some
cases).

Line 7b
If you checked the “Yes” box on line 7a,
enter the name of the foreign country or
countries in the space provided on line 7b.
Attach a separate statement if you need
more space.

Line 8
Foreign Trusts
If you received a distribution from a foreign trust, you must provide additional information. For this purpose, a loan of cash
or marketable securities generally is considered to be a distribution. See Form 3520
for details.
If you were the grantor of, or transferor
to, a foreign trust that existed during 2007,
you may have to file Form 3520.
If you were treated as the owner of a
foreign trust under the grantor trust rules,
you are also responsible for ensuring that
the foreign trust files Form 3520-A. Form
3520-A is due on March 17, 2008, for a
calendar year trust. See the instructions for
Form 3520-A for more details.